Shares of Mobileye Global Inc are surging after Volkswagen AG ( VLKAF ) announced a partnership for driver assistance.

Volkswagen ( VLKAF ) is teaming up with Valeo and Mobileye to upgrade the advanced driver assistance systems (ADAS) in its upcoming MQB-based vehicle lineup.

The partnership aims to improve both vehicle safety and comfort, while meeting customer needs and complying with regulatory standards.

Volkswagen ( VLKAF ) is focused on enhancing the safety and automation of its mass-market MQB platform vehicles using advanced technology.

The collaboration will bring Level 2+ autonomous driving features, such as traffic jam assist, hazard detection, parking assist, and additional innovations.

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“This cooperation supports us on our road to transformation: by sourcing hardware and software together, we streamline procurement, reduce complexity, and improve efficiency,” said Dirk Große-Loheide, Member of the Board of Management of the Volkswagen Brand responsible for Procurement and Member of Volkswagen AG’s Extended Executive Committee.

Through the partnership, the company will enable hands-free driving on designated highways, along with a variety of advanced features like 360-degree emergency assistance and driver monitoring.

The upcoming system will feature a 360-degree ring of cameras and radar, providing intelligent driving aids like smart parking and enhanced safety measures.

The collaboration is set to integrate key hardware from Valeo, including high-performance ECUs and sensors, with Mobileye’s Surround ADAS platform.

Notably, the EyeQ6 High processor and mapping technologies are central to improving the overall system efficiency and allowing over-the-air updates to meet evolving safety requirements.

The project will enhance the system’s efficiency by replacing multiple ECUs with a centralized unit, making the vehicle systems more streamlined and capable of performance optimization.

Price Action: MBLY shares traded higher by 7.4% at $16.39 on Tuesday.

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